Primary Author: Eric Druker
Co-Author(s): Graham Gilmer
Audience Focus: Intermediate
Application Type: Application
Venue: 2013 AACE International Annual Meeting, Washington, DC, USA
Abstract: One of the greatest challenges in managing costs on programs is the lack of cost, schedule, and risk integration. Despite the interconnection of these disciplines, it is rare when cost estimates, schedules, and risk registers are fully integrated artifacts. Analytical Program Management (APM) is a methodology, pioneered on highly complex NASA programs, for completely integrating cost, schedule and risk. APM allows projects to immediately determine the cost impacts of schedule growth and vice versa. Additionally, since the cost estimate and risk register are integrated with the schedule, the secondary and tertiary effects are uncovered, improving the quality of the individual artifacts. This provides a far more complete view of critical risks affecting cost and schedule. Through the use of Monte Carlo simulation, the risk-adjusted cost estimate and schedule are generated allowing program managers to budget and plan using statistical confidence levels. This methodology identifies actions that program managers can take, either by accelerating tasks, mitigating risks, or removing scope, to ensure their program fits within a constrained budget and schedule.
Co-Author(s): Graham Gilmer
Audience Focus: Intermediate
Application Type: Application
Venue: 2013 AACE International Annual Meeting, Washington, DC, USA
Abstract: One of the greatest challenges in managing costs on programs is the lack of cost, schedule, and risk integration. Despite the interconnection of these disciplines, it is rare when cost estimates, schedules, and risk registers are fully integrated artifacts. Analytical Program Management (APM) is a methodology, pioneered on highly complex NASA programs, for completely integrating cost, schedule and risk. APM allows projects to immediately determine the cost impacts of schedule growth and vice versa. Additionally, since the cost estimate and risk register are integrated with the schedule, the secondary and tertiary effects are uncovered, improving the quality of the individual artifacts. This provides a far more complete view of critical risks affecting cost and schedule. Through the use of Monte Carlo simulation, the risk-adjusted cost estimate and schedule are generated allowing program managers to budget and plan using statistical confidence levels. This methodology identifies actions that program managers can take, either by accelerating tasks, mitigating risks, or removing scope, to ensure their program fits within a constrained budget and schedule.